China's Wanye, Yoke Slide After State Chip Fund Exposes Payback Plan(Yicai Global) Sept. 2 -- A state-owned semiconductor fund in China has revealed new profit gain plans regarding its first phase set up more than six years ago, resulting in stock price declines in three of its portfolio companies, including Wanye Enterprises and Yoke Technology.
The China Integrated Circuit Industry Investment Fund, also known as the "Big Fund", will also cut its holdings of Sanan Optoelectronics soon, according to separate statements the three firms released recently.
The CICF has announced its intentions to reduce its stakes in 13 listed companies this year, including the three above-mentioned firms, according to Shanghai Securities News. So far, the fund has sold CNY4.5 billion (USD691.8 million) worth of equity.
Wanye's stock price [SHA: 600641] fell as much as 9.1 percent to CNY21.53 (USD3.30) intraday. The fund aims to get rid of 2.1 percent of Wanye's shares outstanding at most in the next six months, the Shanghai-based company that sells integrated circuit core equipment said in a statement yesterday. The CICF currently has a nearly 7.1 percent stake in Wanye, making it the third-largest shareholder.
Yoke's equity price [SHE: 002409] slid as much as 3.7 percent to CNY78.90 intraday after the firm said the fund is planning to sell a 1 percent stake in it in the next three months. Before that, the CICF has 5.7 percent of the semiconductor materials maker's shares outstanding.
Shares of Sanan [SHA: 600703] were 1.5 percent down today after a bigger slump yesterday. The company said on Aug. 31 that it is expecting the CICF to offload as much as 2 percent of the chipmaker's stock.
The Big Fund injected CNY6.4 billion into Xiamen-based Sanan in 2015, and it has more than doubled the money from that time, according to the Paper.
The first phase of the fund reached CNY138.7 billion (USD21.5 billion) in scale. The payback period started in 2019 and should continue till 2024. The CICF has invested in 25 listed firms by now and most of the investments are already bearing fruit.
Editor: Emmi Laine, Xiao Yi
